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What tax software are people using for old returns like 2021? Can you still use TurboTax or H&R Block for prior years? I'm in a similar situation and not sure which option is best.
Most major tax software companies offer prior year versions, but you usually have to pay for them separately. TurboTax, H&R Block, and TaxAct all have 2021 versions available for purchase on their websites. The downside is you'll probably have to file by mail since e-filing is usually only available for current and immediate prior year returns.
I went through this exact same situation with my 2020 return! The panic is real but you're actually in a much better position than you think. Since you're owed a refund, you have zero penalties to worry about. One thing I wish someone had told me earlier - gather ALL your documents first before you start filing. I made the mistake of starting with just my W-2 and then realized I was missing my 1099-MISC from that side gig income you mentioned. It delayed everything by weeks. For your $3,800 side gig income, you'll definitely need to file a Schedule C if it was freelance/contractor work, and don't forget about potential business deductions you might have had that year - home office, supplies, mileage, etc. Those can really add up and increase your refund. Also, double-check your bank records from 2021-2022 to see if you made any estimated tax payments that you might have forgotten about. I found I had made a small quarterly payment that I completely forgot about, which added another $400 to my refund. The whole process took me about 6 weeks from filing to receiving my refund, but that included the time I spent tracking down missing documents. You've got this!
This is such great advice! I'm definitely going to gather all my documents first before starting anything. You mentioned business deductions for the side gig - I actually did work from home that year and bought some equipment for my freelance work. I had no idea I could still claim those deductions for 2021. How detailed do the records need to be for those business expenses? I probably still have some receipts somewhere but I'm worried I might not have kept everything organized from that long ago.
I wonder if its different if your accused of a federal crime vs a state crime? Maybe federal money cant be used for federal crimes? Just thinking out loud lol
One thing to keep in mind is the importance of clear documentation from the start. I'd recommend keeping detailed records of your fundraising page, showing that you're not offering any goods or services in return for donations. Screenshot everything - the description, any updates you post, etc. Also consider adding language to your fundraiser that explicitly states donations are gifts to help with legal expenses, with no expectation of anything in return. This helps establish the gift nature of the contributions from the beginning. If you do end up receiving a 1099-K from the platform, having this documentation will be crucial when explaining to the IRS why these payments shouldn't be treated as taxable income. The clearer your paper trail, the easier it'll be to handle any questions that come up later.
This is really solid advice about documentation! I'm just starting to consider fundraising for my own legal situation and hadn't thought about being so explicit from the beginning. Would it also help to keep records of how the funds are actually used? Like receipts showing the money went to attorney fees rather than personal expenses? I'm worried about creating any appearance that I'm benefiting personally from donations meant for legal costs.
Has anyone tried using the IRS's online account system to find this info? I've heard they have a business tax portal but never used it myself.
I used the IRS online account for my business. It shows your filed returns but doesn't break down specific lines like your profit. It's more useful for checking if they received your return, seeing any balances due, or making payments. You still need to look at your actual Schedule C for the profit details.
Great thread! As someone who's been running a small business for a few years now, I wanted to add that it's also helpful to understand the difference between cash vs. accrual accounting when looking at your profits. Most small businesses use cash accounting (you report income when you receive it and expenses when you pay them), but if you're doing accrual accounting, your profit calculation might look different because it includes money you've earned but haven't collected yet. Also, don't forget that your Schedule C profit affects your quarterly estimated tax payments for the following year. If this is your first profitable year, you'll likely need to start making quarterly payments to avoid penalties. The IRS expects you to pay as you go, not just once a year at tax time. One more thing - keep really good records of your business expenses throughout the year. I use a simple spreadsheet to track everything monthly, which makes tax time so much easier and ensures I don't miss any legitimate deductions that could reduce that profit number on line 31.
This is incredibly helpful advice! I'm just starting out with my small business and had no idea about the quarterly payment requirement. When you say "pay as you go," how do I know how much to send in quarterly? Is there a specific percentage of my profit I should be setting aside, or does it depend on my total income including my day job? Also, your point about record keeping is spot on. I've been throwing receipts in a shoebox like my dad used to do, but a spreadsheet sounds way more organized. Do you track anything specific beyond just income and expenses?
Did you claim any recovery rebate credit, earned income credit, or child tax credit on your return? Those trigger automatic reviews this year and are causing major delays. Also check if there were any math errors on your return. The IRS has been overwhelmed with corrections for simple math mistakes that slow everything down.
This is good advice. I had an 11-month delay last year because I miscalculated my recovery rebate credit by $200. The worst part was they never told me - I only found out when I finally got through to an agent on the phone.
I'm dealing with a similar situation - my refund has been delayed for 6 months now. After reading through all these responses, I'm realizing there might be more options than I thought. For what it's worth, I did finally get through to the IRS using the early morning calling strategy someone mentioned. Called at exactly 7:00 AM on a Wednesday and got connected after about 2 hours on hold (which felt like a miracle compared to my previous attempts). The agent was actually very helpful and could see exactly what was holding up my return. In my case, it turned out to be an issue with my employer's reporting that didn't match my W-2. The agent explained that these discrepancies often aren't caught until months later in the process, which explains the long delay with no communication. One thing I'd add is to make sure you have all your documentation ready when you do get through to someone - your AGI from last year's return, exact refund amount, and any relevant tax documents. The agents can often resolve things on the spot if you have everything they need. Victoria, given that you're at 8 months now, you definitely qualify for Taxpayer Advocate Service assistance. That might be your best bet at this point, especially with the financial hardship from needing those home repairs.
This is really helpful advice! I'm new to dealing with tax issues like this and honestly feeling pretty overwhelmed by all the different options people have mentioned. It sounds like you had success with the early morning calling strategy - I'm definitely going to try that approach. Quick question though - when you say have your AGI from last year ready, where exactly do I find that? Is it on my 2023 tax return somewhere specific? I want to make sure I have everything prepared before I attempt another call so I don't waste the opportunity if I actually get through to someone. Also, thank you for mentioning the Taxpayer Advocate Service again - I think that might be my best option given how long this has dragged on. Has anyone here actually used TAS before? I'm curious what the process is like and how long it typically takes them to help resolve these kinds of situations.
Jay Lincoln
Just wanted to add - if you were claimed as a dependent on someone else's return (like your parents), the filing thresholds are different. For 2021, dependents with only earned income needed to file if they made more than $12,550. But if you had unearned income (like interest), it gets more complicated. Also, even if you weren't required to file, you might want to anyway to get back that withheld tax. It's only $20 total between both years, but that's still your money!
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Jessica Suarez
ā¢Does work study count as earned income or is it considered some kind of financial aid? My college financial aid office gave me conflicting info about this.
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Jay Lincoln
ā¢Work study absolutely counts as earned income, despite what some financial aid offices mistakenly say. The money you earn through work study is reported on a W-2 just like any other job, and the IRS treats it as regular employment income for tax purposes. This is why your work study employer withheld taxes (even the small amounts mentioned). The confusion sometimes happens because while work study is part of your financial aid package in terms of how it's awarded, the actual earnings are treated as regular employment income once you receive them. It's fundamentally different from grants or scholarships in how it's taxed.
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Marcus Williams
One thing nobody's mentioned: if you were a full-time student and your income was that low, you might qualify for the American Opportunity Tax Credit or Lifetime Learning Credit for those years! Worth looking into if you paid tuition or had educational expenses.
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Lily Young
ā¢If they weren't required to file in the first place, can they still claim education credits after the fact? I'm in a similar boat and wondering if I should file for previous years just to get education credits.
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Emma Wilson
ā¢Great point about education credits! Yes, you can absolutely still file for previous years to claim education credits even if you weren't originally required to file. The American Opportunity Tax Credit can be worth up to $2,500 per year for the first four years of college, and you have three years from the original due date to file and claim it. So for 2021 taxes, you'd have until April 2025 to file, and for 2022 taxes until April 2026. If you paid tuition those years and meet the income requirements, filing late returns just for the education credits could result in significant refunds - way more than just getting back that small amount of withheld tax. Definitely worth looking into!
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